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Legislators face key issues in 2012

This is the first week of the 2012 Legislative session and I am looking forward to the work ahead. We will immediately begin finalizing the redistricting process and then begin working on balancing the budget. Balancing the budget will be an arduous task, but one for which I am thankful because we live in Tennessee and Tennessee balances its budget every year! As a matter of fact, our State Constitution mandates it. If only our federal government would follow suit. I will be running a resolution this year encouraging them to do just that.

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The Future of “Obamacare”

Legislators nationwide are still awaiting federal court action on the Patient Protection and Affordable Care Act, commonly referred to as “Obamacare.” In the meantime, state officials are gathering input from insurers, healthcare providers and patient advocates across Tennessee with the first federal evaluation of the state’s compliance to the plan set to take place in January 2013. We are studying our options at this time.

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Insurance Exchanges

Under the federal healthcare act, states are required to set up a health insurance exchange that allows employers and individuals to understand and compare insurance coverage options through online marketplaces. States have until 2013 to set up their own exchange or the U.S. Department of Health and Human Services will establish one for them and administer it. Health insurance exchanges have been controversial for both providers and states that are against federal health care reform overall. I, personally, hope to see “Obamacare” repealed. The state has set up an insurance exchange taskforce that is studying the matter and we expect to get a recommendation by early next year.

The most likely option is to propose a state health insurance exchange that would allow people who aren’t insured through their work to buy federally-regulated insurance policies. There must be an exchange for businesses with no more than 100 employees, referred to as the Small Business Health Option Program (SHOP), and a non-group market exchange. The legislature also has the option to pass legislation to give the authority to create exchanges to the Governor, or the Executive branch of Tennessee’s government.

Tennessee will receive federal funds in 2012 for planning and oversight; capacity building, demonstration programs, and training and education. Legislation is expected to be introduced regarding the oversight of the program, which includes state procedures used to set up the program. The mandate for mandatory health insurance coverage follows in 2014. This is also when state-based health care insurance exchanges must be operational.

The federal act will expand Medicaid eligibility up to 133 percent of the poverty level with subsidies up to 400 percent, impacting 1.5 million Tennesseans. Many questions remain concerning the sustainability of such a program and how much more money over a period of time would be the state’s responsibility.

I always appreciate your calls and would enjoy having you come to the Capitol and visit anytime. We often plan special days for school children to visit. Call my assistant anytime, and we will be happy to host you or your group at the State Capitol.